Rise in Investment Income Propels Nepal Insurance Company to Achieve Impressive 232.33% Net Profit Growth; EPS at Rs. 60.55
Mon, Feb 12, 2024 12:38 PM on Latest, Financial Analysis, Company Analysis,
Nepal Insurance Company Limited (NICL) has published its report for the second quarter of the fiscal year 2080/81 with an increase in Net Profit by 232.33%. The company accumulated a net profit of Rs. 49.77 crores compared to Rs. 14.97 crores which the company had profited in the corresponding quarter of the previous fiscal year.
The company has also increased its insurance fund by 4.95% to reach Rs. 1.81 Arba in Q2 of FY 2080/81. Similarly, a spike of 346.45%, amounting to Rs. 71.43 crores have been witnessed in income of the company made from investment, loans and other sources.
The net claim payment of the company too has increased by 3.59% in the second quarter of the current fiscal year.
NICL has managed to increase its paid-up capital by 10% and as per the report of the second quarter published today, the paid-up capital amounts to Rs. 1.64 Arba. Moreover, it has Rs 22.32 crores as retained earnings.
Meanwhile, the Earning per Share (EPS) of the company has increased to Rs. 60.55 and maintains a Net worth per Share of Rs. 206.14.
Lastly, the Price to Earnings (PE) ratio of the company stands at 15.36 times.
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Nepal Insurance Company Limited | ||
|---|---|---|---|
| Q2 2080/81 | Q2 2079/80 | Difference | |
| Share Capital | 1,644,241.94 | 1,494,765.40* | 10.00% |
| Special Reserves | 1,273,351.41 | 1,024,452.54* | 24.30% |
| Catastrophe Reserves | 89,062.85 | 64,172.97* | 38.79% |
| Retained Earnings | 223,240.65 | 160,074.09* | 39.46% |
| Other Equity | 159,562.89 | 157,084.92* | 1.58% |
| Insurance Fund | 1,814,851.26 | 1,729,261.66* | 4.95% |
| Investment | 4,311,585.93 | 3,524,925.94* | 22.32% |
| Net Premium | 296,744.70 | 280,072.82 | 5.95% |
| Income from Investment, Loan and others | 714,353.68 | 160,006.60 | 346.45% |
| Claim Payment (Net) | 120,199.76 | 116,033.38 | 3.59% |
| Commission Expenses | 6,873.50 | 8,673.09 | -20.75% |
| Net Profit | 497,797.74 | 149,787.95 | 232.33% |
| No of Policies | 84,792.00 | 87,942.00 | -3.58% |
| EPS (In Rs.) | 60.55 | 20.04 | 202.12% |
| Net Worth per Share (In Rs.) | 206.14 | 194.05 | 6.23% |
| PE Ratio | 15.36 | ||
| Solvency Ratio | 2.08 | - | - |
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